Many practitioners think of S corporations as corporations that are taxed “for the most part” like partnerships. Although the Subchapter S Revision Act of 1982 significantly reduced the federal income tax differences, and the Small Business Jobs Protection Act of 1996 eliminated many others, there are still some important differences. In fact, it’s probably most reasonable to view them as very different entities that share a few similar, but far from identical, characteristics.

Many practitioners think of S corporations as corporations that are taxed “for the most part” like partnerships. Although the Subchapter S Revision Act of 1982 significantly reduced the federal income tax differences, and the Small Business Jobs Protection Act of 1996 eliminated many others, there are still some important differences. In fact, it’s probably most reasonable to view them as very different entities that share a few similar, but far from identical, characteristics. Join Mark J. Patrick, CPA from Nichols Patrick for a “Plain English” discussion on these differences